Russia says it is selling its first Eurobond since sanctions were imposed two years ago.

The Finance Ministry said on May 23 that State bank VTB Capital is the sole organizer of the notes.

According to a person familiar with the matter, the 10-year, dollar-denominated notes won't violate U.S. and European Union sanctions imposed on Moscow in 2014 over its actions in Ukraine.

The U.S. government and the EU have warned foreign banks to stay away from the sale, saying it could undermine sanctions.

The bond issuance comes at a time when Russia is facing its widest budget shortfall since 2010 after oil prices more than halved in the past two years, and the country's economy is going through its second year of recession.